The Currency Risk
Business Today|August 26, 2018

INDIA’S MACROECONOMIC PARAMETERS ARE SLIDING AT A TIME WHEN THE WORLD IS STARING AT A FULL-BLOWN TRADE AND CURRENCY WAR.

Anand Adhikari
The Currency Risk

A currency war, fought by one country through competitive devaluations of its currency against others, is one of the most destructive and feared outcomes in international economics… whether prolonged or acute, these and other currency crises are associated with stagnation, inflation, austerity, financial panic and other painful outcomes. Nothing positive ever comes from a currency war.” - Excerpted from the book Currency Wars: The Making Of The Next Global Crises by James Rickards.

Three years after the global financial meltdown of 2008, investment banker James Rickards penned his book on the new battleground of future wars amongst the economic superpowers. It was not nuclear or chemical, but financial war. His subject future ‘Currency Wars’ is very apt in today’s context. The world actually fears one between the two economic superpowers.

Rickards linked the currency wars as a subject of national importance and security and not just a subject of discussion for economists and investors. Call it political compulsions, or ground reality, US President Donald Trump has been accusing its trading partners– especially China and the European Union – of artificially depreciating their currency to render their goods more attractive in the US.

Recent trade tariffs by the US in steel and aluminium has seen China react with similar levies on US exports. Both are preparing their next lists to fire at each other. The trade war is already turning into a currency war where Chinese currency saw a sharp depreciation of around 8 per cent. This may be a Chinese tactic to neutralise the impact of higher tariffs for its exported goods in US with a depreciated currency. “Chinese currency is dropping like a rock,” said Trump, advocating a weak dollar to gain competitiveness. Has the currency war already begun?

Geopolitical Tensions

هذه القصة مأخوذة من طبعة August 26, 2018 من Business Today.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة August 26, 2018 من Business Today.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من BUSINESS TODAY مشاهدة الكل
'Gap between haves and havenots is narrowing"
Business Today India

'Gap between haves and havenots is narrowing"

Tanvee Gupta Jain, Chief India Economist of UBS Securities India, on India's consumption story and the risks to the Indian economy

time-read
4 mins  |
December 08, 2024
Rural Hope, Urban Fears
Business Today India

Rural Hope, Urban Fears

Industry enthused by signs of a revival in rural demand, but fresh concerns emerge over urban consumption

time-read
3 mins  |
December 08, 2024
CRASH LANDING
Business Today India

CRASH LANDING

The Supreme Court's order to liquidate Jet Airways, after prolonged insolvency proceedings, brings the focus back on the actual effectiveness of IBC

time-read
3 mins  |
December 08, 2024
Indictment and its Aftermath
Business Today India

Indictment and its Aftermath

US prosecutors' decision to press charges against Gautam Adani and others in a case of alleged bribery could hit the group's ambitious expansion plans

time-read
3 mins  |
December 08, 2024
"Moving to cloud helped us grow❞
Business Today India

"Moving to cloud helped us grow❞

What was the problem you were grappling with?

time-read
1 min  |
November 24, 2024
She's Got Time
Business Today India

She's Got Time

MORE WOMEN ARE BECOMING WATCH CONNOISSEURS, SEEKING OUT BOTH JEWELLED AND TECHNICAL WATCHES FOR THEIR STYLE AND CRAFTSMANSHIP

time-read
3 mins  |
November 24, 2024
RISING STAR
Business Today India

RISING STAR

PARUL GULATI IS a name that's been steadily gaining prominence in the Indian entertainment industry after she appeared on season 2 of Shark Tank in 2023. She has become a multifaceted personality who effortlessly transitions between acting and entrepreneurship.

time-read
1 min  |
November 24, 2024
Building on a Legacy
Business Today India

Building on a Legacy

WHEN ZAHABIYA KHORAKIWALA stepped into her role as Managing Director of Wockhardt Hospitals over a decade ago, she confronted formidable challenges that have since turned into achievements.

time-read
1 min  |
November 24, 2024
LEADER IN INNOVATION
Business Today India

LEADER IN INNOVATION

AS FEDEX'S PRESIDENT (Middle East, Indian subcontinent and Africa), Kami Viswanathan has a lot on her plate.

time-read
1 min  |
November 24, 2024
WAITING IN THE WINGS
Business Today India

WAITING IN THE WINGS

Here are those who missed out as they have not yet completed a year in office; they'll be strong contenders in 2025

time-read
1 min  |
November 24, 2024